Liberty Media Corp. said it is proposing a cash tender offer to purchase up to 15 million common shares of Home Shopping Network Inc. at $ 7 a share.
In a press release, Liberty called the offer a reaffirmation of confidence in Home Shopping Network.
As reported earlier this month, Home Shopping Network had its credit suspended by major factoring firms, and posted a $ 26.9 million loss in the second quarter.
Liberty owns 20 million shares of Home Shopping’s class B common stock and 616,300 shares of its common stock. Such shares constitute about 23% of the outstanding common equity of Home Shopping.
Liberty Media said that because the class B common stock it holds entitles it to 10 votes a share on matters submitted to stockholders, such shares constitute approximately 65% of the outstanding voting power of Home Shopping.
Purchasing another 15 million shares would increase Liberty’s ownership of Home Shopping common equity to 40% of outstanding shares, the company said.
As reported earlier this month, Liberty withdrew a $ 640 million-plus offer to buy full control of Home Shopping amid an escalating federal criminal investigation and numerous private lawsuits alleging financial improprieties by Home Shopping’s chairman and former president.
Liberty said its offer would benefit Home Shopping shareholders who “may have been disappointed by the withdrawal of Liberty’s earlier merger proposal.”